Over the past couple of years, the numbers of foreclosures around the country have been steadily falling.
For investors and families searching for low cost opportunities, it can be difficult to pinpoint the right state or city to choose. It’s important to stay ahead of the trends, news, and constant law changes.
Recently, we have been hearing a lot about the number foreclosed homes dropping rapidly – specifically Florida even though they still have the national high – but the trend isn’t true everywhere.
Why New York and New Jersey Are Loaded with Foreclosures
As the national inventory of foreclosed homes is at a five year low, New York and New Jersey are currently very close to peak levels.
One of the many reasons that the foreclosure pipeline is backed up in the two states is due to the fact that they are judicial foreclosure states — meaning that the courts have to sign off on foreclosures before the original lender can reclaim the property.
The judicial state requires all lenders affirm that all aspects of the mortgage and foreclosure filings are correct, and mitigation is still very prevalent in New Jersey, increasing the time it takes for homes to make it from the original filing to auction.
Additionally, some of the victims of Hurricane Sandy last year who may have not been fully insured walked away instead of trying to rebuild. All of these trends strongly affect the amount of foreclosed homes in the two states.
What New York and New Jersey Foreclosures Mean for You
This can spell good news for those looking to invest and flip a foreclosed home, or families simply trying to find a low-cost home in the area.
Recent numbers show that New York’s foreclosure inventory was somewhere around 144,000 homes in the end of the third quarter and New Jersey’s inventory was at 119,000. With the supply of foreclosed homes currently on the market in the area, and the seemingly-endless backlog, prices for homes in these states could drop dramatically at auctions. Fortunately, for those looking to move into the area, there is also a weak demand for homes of that nature in both New York and New Jersey.
The mitigation programs and laws on the books also make the process from filing to auction take close to two years or longer, making this backlog of inventory something that could be as large as it is for a long while.
Again, this spells great news for those looking to invest or save in the New York – New Jersey metro area. Start looking – and start saving – today.